There seems to be a defined plateau in the price reduction trends. Every year we have that feeding frenzy rush of buying activity, then settle back into low quality listings that sit on the market, until next time, and more price reductions.
At this time it is hard to say where it all will end, but for sure the price of residential Real Estate is very high. Just because your monthly payment, with these historically low interest rates, is comparable to rents doesn’t make this a good time to commit to this much debt, unless you intend to pay it off, quickly.
I’m like a broken record about what you buy, and how you buy it.
Today you have to park your emotions at the door, and think like an investor. The market place is over priced, but there are things you can do to build equity, if you buy right, and buy smart.
Make a business plan for a property well below your ability to pay. Think about cashing out a property before you think about the perfect family home. Think about spending more time in the field, and less time checking your computer. Get a good agent who is out working every day.
Think, that the equity in your home is much more important having a house like the one you grew up in.
Park the emotions at the door, save that for the kids. Real Estate is a business.